The Amsterdam Incorporated has a fiscal year end of June 30^th. The bookkeeper has been ill and was unable to complete the recording of the items to follow. You have been called upon to complete the work and present the financial statements for the year ended June 30, 2020.

Information regarding unrecorded or unadjusted events:

1. Depreciation expense must be adjusted. The acquisition of the equipment was on October 1, 2018. Residual value was $200,000 with a useful life of 14 years.
2. Supplies at June 30, 2020, after a physical count, was determined to be $386,000
3. Utilities expense not paid for June 2020 amounting to $76,500 was not included in the records as the invoice arrived after preparation.
4. Total expired insurance for the year is $575,000
5. Accrued wages earned by the employees are $110,000
6. The company pays $22,000 of interest on all the notes payable per month on the 20^th of the month. Of the Long term notes payable, $500,000 will be paid by June 30, 2021
7. Interest on the notes receivable in the sum of $2,900 has not been recorded or received and $15,000 of the notes receivable due November 2023 will be received by June 30, 2021
8. It was determined that $10,900 of accounts receivable will not be collectible
9. After an aged analysis of the accounts receivable, it was estimated that the possible uncollectable amount is $53,200
10. A 2: 1 split took place for the common shares on March 31, 2020
11. Preferred shares totaling 10,000 were issued for cash at $4 per share on May 15, 2020
12. Declared a 5% common share dividend on June 4, 2020 to be issued June 18, 2020, The shares were trading at $5.20 and $5.00 respectively on those dates.
13. Record the dividend event on June 18, 2020
14. Redeemed 20,000 common shares on June 25, 2020 paying $3.90 per share
15. The bonds payable represent a bond issue with a par of $100,000, 9% semi-annual due December 31, 2024 when the market rate was 10%.
16. The effective income tax rate is 25%.

Additional data related to the unadjusted trial balance (i.e. prior to above events being recorded):

Preferred shares $1.00 cumulative unlimited shares authorized

None issued

Common shares unlimited authorized

84,000 shares issued and outstanding

Required:

1. Prepare the adjusting entries in proper form
2. Prepare the adjusted trial balance as at June 30 2020 (You may use ledgers, T accounts or a worksheet to determine the balances for the adjusted trial balance

Unadjusted T/B credit debit 3,986,749 101 Cash 875,000 49200 38,270 308,900 820,000 104 Accounts receivable 105 Allowance for doubtful accounts 110 Notes receivable due January 2 112 Interest receivable 120 Inventory 126 Supplies 127 income tax refundable 128 Prepaid insurance 150 Land held for sale 152 Notes Receivable due Nov 2023 167 Equipment 168 Accumulated deprec., equipment 201 Accounts payable 202 Notes payable due March 2021 205 Preferred sh div Payable 206 Common Share div Payable 208 Interest payable 586,250 65,000 50,000 7,200,000 500,000 970,000 418,520 4,500,000 96,149 210 Wages payable 251 Long-term notes payable 255 Bonds payable 300 Preferred shares 301 Common shares 302 Contributed surplus 303 Common shares div. distributable 305 Retained Earnings 580,980 5,600 5,474,020 12,765,820 401 Sales 403 Interest revenue 600 Cost of goods sold 612 Depreciation expense, equipme 623 Wages expense 633 Interest expense 4169620 125000 2,740,000 110,000 143,750 21,750 2,440,000 637 Insurance expense 639 Bad debt expense 640 Rent expense 652 Supplies expense 683 Business tax expense 684 Repairs expense 690 Utilities expense 695 Income tax expense (refundable) Totals 420,000 420,000 840,000 25.360.289 25.360.289